How Do I Form a Professional Limited Liability Company In Illinois or Iowa

Article written by Illinois & Iowa Attorney Kevin O’Flaherty

In this article, we’ discuss the difference between a PLLC and an LLC, forming a PLLC, and what to do after forming your PLLC.

PLLC Versus LLC

A professional limited liability company is a specialized type of limited liability company that is meant for licensed professionals, such as dentists, chiropractors, physicians, accounters, architects, etc. PLLCs exists because many states do not allow LLCs to be formed by professionals whose work requires a license. However, PLLCs act much the same as LLCs, giving the professionals business owner(s) the same benefits including the tax breaks, limited liability, and a host of other benefits.

For example, a group of doctors want to form a PLLC because it separates their personal liability from the liability of the business so that if one of the doctors gets sued for malpractice the other doctors won’t also get sued. PLLCs also offer licensed professionals an option outside of professional corporations (PC), which don’t always confer as many benefits. Just remember, every business is different and if you’re not sure what legal and tax structure is the best fit for your company, speak with a qualified business attorney.